Problem 1. For the first quarter of 2021, ABC Firm prepared the following sales budget and purchases budget. Sales Budget April Total May 3,500 June 7,300 Unit Sales 4,600 15,400 SP 8 9 8 8 Sales $ 36,800 $ 28,000 $ 58,400 $ 123,200 Purchases Budget May April June Total Unit Sales 4,600 3,500 15,400 660 700 7,300 660 7,960 1,460 Unit Required 5,300 4,960 16,060 890 700 1,460 890 Units 2 B Purchased 4,410 4,260 6,500 15,170 Cost 5 5 5 5 Purchases $ 22,050 $ 21,300 $ 32,500 $ 75,850 The firm sells 75% of its items on account. Of the items sold on account, 20% are collected in the month of the sale. The month after the sale, the firm collects 50% and the month after that, it collects 25%. Actual units sales in January were 4,800. In February unit sales were 2,700 and in March, they were 5,900. 1. What is the firm's apparent policy for inventory on hand at the end of each month? 2. What are expected unit sales for July? 3. Prepare a properly formatted budget of cash collections